# Fed holds interest rates and announces normalization of balance sheet next month

> The Federal Reserve held its overnight rate at 1.00% to 1.25% and announced it will begin normalizing its balance sheet in October. Officials still projected gradual tightening and said recent hurricanes would weigh on growth in the short term.

- Date: 2017-09-20 · published 2017-09-20T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/69148-fed-holds-interest-rates-and-announces-normalization-of-balance-sheet-next-month
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Tighter U.S. monetary policy supports the dollar, which tends to weigh on dollar-priced commodities and raises financing costs for holding feed inventories.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-08-31 | [Fed expected to hold interest rates steady next month](https://feedsoft.ai/events/34478-fed-expected-to-hold-interest-rates-steady-next-month.md) | +1.8% | +2.3% |
| DXY | 2018-08-01 | [Gold pinned lower after Fed announces unchanged interest rates](https://feedsoft.ai/events/63462-gold-pinned-lower-after-fed-announces-unchanged-interest-rates.md) | +0.2% | +0.5% |
| DXY | 2022-10-28 | [Ringgit extends downtrend vs dollar ahead of US fed decision on interest rates next week \| Malay Mail](https://feedsoft.ai/events/39383-ringgit-extends-downtrend-vs-dollar-ahead-of-us-fed-decision-on-interest-rates.md) | +1.2% | -2.4% |
| DXY | 2017-06-14 | [Dollar surges as hawkish Fed raises rates maintains rate outlook talks balance sheet reduction](https://feedsoft.ai/events/10196-dollar-surges-as-hawkish-fed-raises-rates-maintains-rate-outlook-talks-balance.md) | +0.6% | -0.9% |
| DXY | 2026-09-22 | [Fed hawkishness puts Vietnam's dong, inflation and interest rates in focus](https://feedsoft.ai/events/17757-fed-hawkishness-puts-vietnam-s-dong-inflation-and-interest-rates-in-focus.md) | +1.1% | +1.4% |

## Sources

- economies.com: https://www.economies.com/forex/news/fed-holds-interest-rates-and-announces-normalization-of-balance-sheet-next-month-20693

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.